Will Influencer Marketing Work for a Fintech Company?
In 2020, HDFC Bank launched a social media campaign #moohbandrakho to raise the importance of the use of masks during the Covid-19 pandemic. Given the success of the campaign, it was soon extended to spread awareness about cyber fraud in the financial sector. Backed by a groovy tune, a great hook step and popular internet celebrities like Gauhar Khan, Prajakta Kohli and Dhanashree Verma, the campaign received over 19 million views and a 1.5 million + engagement rate in less than 42 hours of it getting launched.
Compared to other sectors namely travel, lifestyle, fashion or beauty, the financial sector has been a little slow in exploring the potential of social media influencer marketing. However, a purpose-driven marketing endeavour, especially one with the intent to spread awareness and education in the financial sector is very relevant today. The success of HDFC bank’s #moohbandrakho campaign is a testimony to that fact.
The growth & challenges of the fintech sector
The global fintech market is projected to reach $698.48 billion by 2030, growing at a rate of 20.3 % from 2021-2030. On the face of it, these projections look very promising, however, fintech is a very competitive space.
Fintech companies are constantly exploring innovations and using advanced technologies to launch new products with the intent to disrupt the consumer finance segment. But, sustaining the product and turning it into a success is not exactly easy.
The sad reality is that 9 out of 10 fintech startups are unable to take off. Although there is more than one reason for this failure, the inability to package and market the fintech product is a big factor.
In today’s time, a good marketing strategy must entail four key factors - education, genuinity, ability to connect and outreach. Influencer marketing covers the four bases very efficiently.
How Influencer Marketing can help overcome these challenges
1. Educating potential customers
How can fintech companies create a demand for their products? The answer is through education and awareness. Empowering customers by providing them with informative content is a great way to generate visibility and awareness about a financial product or service.
However, finance and banking in general are seen as very complicated and difficult to deal with. At the same time, not everyone is born with financial prudence. These factors can be a roadblock in promoting a financial product.
But the tables can turn if a young and relatable person is roped in to talk about the product in simple words. This person can be an influencer who has a decent following on social media platforms like Facebook, Instagram or YouTube. The influencer can present the product to their audience and explain to them its features. They can also talk about their own experiences in using the product which will form an instant connection with the potential customer.
2. Reaching out to the GenZ population
The group of people born between the mid-1990s to 2010 are referred to as GenZ. They account for 27% of India's population and post Covid-19 pandemic have been the early adopters of innovation and technological advancement in the domain of fintech. For example, a report suggested that this group of young people has a growing preference towards the use of digital wallets, with over 60 % of transactions being conducted online.
It is therefore becoming more and more relevant for fintech companies to reach out to this cohort as they not only rely on technology in money matters but will also spend more money in the future.
The Gen Z population is also very active on social media platforms and including an influencer for the promotion of fintech products and services is a very logical marketing strategy.
3. Promotes credibility and authenticity
Influencers are known public figures in the online space. Their followers like them for their content and authenticity. Most influencers have a pretty solid portfolio which they have built over time with their past work and sponsorship.
Therefore, if an influencer is lending his or her name to a brand, authenticity and credibility follow. Fintech companies can choose to work with several young influencers who can educate their followers about their product, and service through their content on their platform.
The content can be in any format. The influencer can use and then review the product in their videos. Such a form of marketing results in an instant connection with the audience which is very important when promoting a product that promises safe money transactions or tax filing.
4. Better ROI and analytics
The best thing about influencer marketing is that it allows advertisers to measure key aspects of their marketing campaigns like ROI, impressions, engagement rates etc. These are important marketing metrics that give insight into customer behaviour.
Based on their inputs, fintech companies can improvise or improve their product. They can also learn which aspect of the product got the maximum attention. These metrics also help analyze the performance of the influencer. In short, it allows for better allocation of resources at each level of the campaign.
The financial sector can vastly benefit from influencer marketing provided they use the right set of influencers. And the best part is that it can be started on any budget and is known to work better than sponsored ads on Facebook and Instagram.
Influencer marketing helps create the differentiation factor which is driven by the influencers’ creativity and the uniqueness of the product itself. Therefore, marketers in the fintech world need to embrace influencer marketing in a full-fledged manner.
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